8 May 2019
EQTEC plc
("EQTEC" or the "Company")
Billingham Energy Project MOU with COBRA and Scott Bros
EQTEC plc (AIM: EQT), the technology solution company for waste gasification to energy projects, is pleased to announce that it has entered into a conditional Memorandum of Understanding ("MOU") with COBRA Instalaciones Y Servicios ("COBRA"), the Company's strategic partner for the development of the waste-to-energy projects, and Scott Bros. Enterprises Limited ("Scott Bros") (together, the "Parties") to jointly develop the proposed up to 25 MW Billingham Energy waste gasification and power plant in Haverton Hill, Billingham, UK (the "Project"). The Project is anticipated to process 200,000 metric tons per annum of refuse derived fuel from municipal waste ("RDF").
Pursuant to the MOU, EQTEC will act as lead developer and technology provider for the Project. EQTEC will also provide its engineering, design and technology expertise to the Project, and will work alongside COBRA to produce the full engineering, procurement and construction ("EPC") and operations and maintenance ("O&M") offer for the Project.
Ian Price, CEO of EQTEC, commented:
"We are extremely happy to have executed the MOU, representing our first deal with COBRA, our major strategic partner. This has the potential to be a flagship project of significant scale, with the intention to process at least 200,000 metric tons per annum of RDF, with an estimated project value in the range of £150 million to £180 million.
"Working alongside COBRA, on a project of this magnitude as lead developer, is a major achievement for EQTEC and enables us to use our project development expertise and network to take the Project to a successful close. We look forward to providing further updates in due course.
"With our project pipeline continuously expanding and developing key strategic partnerships, we aim to deliver significant value for our shareholders with key contract wins in the near term."
Ian Fraser, Director of Scott Bros, commented:
"We are delighted to have entered into this agreement with the highly experienced EQTEC team, alongside a world class EPC Group such as COBRA. We have been working closely with local government and stakeholders to advance the Project, which has included securing the planning for the Project. This type of infrastructure development will bring significant benefits and investment in the local community and we are very happy to play a part in it."
Details of the MOU
The MOU sets out the basis on which the Parties will collaborate to advance the Project.
EQTEC will act as the lead developer and technology provider to the Project, as well as providing its engineering, design and technology expertise. EQTEC will work alongside COBRA to produce the full EPC and O&M offering for the Project as well as seeking to secure the necessary funding for the construction and development of the Project, through the introduction of third-party equity and debt investors ("Financial Close").
Financial Close is conditional on, inter alia, the completion of due diligence on the Project, execution of definitive agreements between the Parties, the necessary funding being secured and the EPC and O&M contracts having been entered into. Scott Bros will assist both EQTEC and COBRA with all documentation and additional permitting required for the Project and will also be entitled to a developer's fee payable on Financial Close.
The MOU is subject to an exclusivity period of six months, which can be extended by the mutual consent of the Parties.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
Enquiries
EQTEC plc |
+353 (0)21 2409 056 |
Ian Price - Chief Executive Officer Gerry Madden - Finance Director |
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Strand Hanson - Nomad, Financial Adviser & Broker |
+44 (0) 207 409 3494 |
James Harris/Richard Tulloch/Jack Botros |
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IFC Advisory - Financial PR & IR |
+44 (0) 203 934 6630 |
Tim Metcalfe / Miles Nolan / Zach Cohen |
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Notes to Editors
About EQTEC plc
EQTEC's business model involves sourcing and providing assistance in developing waste elimination projects to which it will ultimately sell its EQTEC Gasifier Technology ("EGT") and O&M services. EGT enables project developers to construct waste elimination plants and recover electrical and thermal energy from the waste streams.
EQTEC sources projects that have a local supply of waste in need of elimination and conversion. It builds relationships and brings together the developers, the waste owners, the building contractors and funders. It then supplies the energy recovery technology and provides engineering services to the projects. Furthermore, EQTEC will provide O&M services to the operating projects generating recurring revenues over the life of the projects.
The Company is quoted on AIM and trades as EQT. Further information on the Company can be found at www.eqtecplc.com.
About Cobra Instalaciones y Servicios SA
COBRA is engaged in the engineering, construction, operation, installation and maintenance of industrial and energy infrastructures for clients in the Americas, Europe, Africa, Asia and Oceania. The company's main business areas are renewable energy and the environment; industrial engineering and plants (EPC projects); electric networks and infrastructures, installations, assemblies and services; and technologies and services.
The COBRA Group was founded in 1944 and is based in Madrid, with presence in over 70 countries worldwide, more than 35,000 employees and a turnover in excess of €3 billion in 2017. Further information on the company can be found at www.grupocobra.com.
About Scott Bros
Based in Stockton-on-Tees, Scott Bros is a wholly owned subsidiary of Scott Bros. Holdings Limited. Scott Bros. Holdings was founded in 1971 and is a well-established haulage and plant hire business, with a long history of working with the local community and local government, investing in environmental solutions.
